What is the Buns On Fire franchisee's obligation regarding changes or modifications to the System?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE XV MODIFICATION OF THE SYSTEM
Franchisee understands and agrees that the System must not remain static if it is to meet, without limitation, presently unforeseen changes in technology, competitive circumstances, demographics, populations, consumer trends, societal trends, other market variables and the needs of customers, and to best serve the interests of Franchisor, Franchisee and all other franchisees. Accordingly, Franchisee expressly understands and agrees that Franchisor may from time to time change the components of the System, including, but not limited to, altering the products, programs, services, methods, standards, forms, policies and procedures of that System; abandoning the System altogether in favor of another system in connection with a merger, acquisition, other business combination or for other reasons; adding to, deleting
from or modifying those programs and services which the Franchised Business is authorized to offer; modifying or substituting entirely the building, premises, equipment, signage, trade dress, décor, color schemes and uniform specifications and all other unit construction, design, appearance and operation attributes which Franchisee is required to observe hereunder; and changing, improving or modifying the Marks. Subject to the other provisions of this Agreement, including the restrictions contained in Section 8.3, Franchisee expressly agrees to abide by any such modifications, changes, additions, deletions and alterations, provided, however, that such changes are system-wide in nature do not materially and unreasonably increase Franchisee's economic obligations hereunder.
Franchisee shall accept, use and effectuate any such changes or modifications to, or substitution of, the System as if they were part of the System at the time that this Agreement was executed.
Except as provided herein, Franchisor shall not be liable to Franchisee for any expenses, losses or damages sustained by Franchisee as a result of any of the modifications contemplated hereby. Franchisee hereby covenants not to commence or join in any litigation or other proceeding against Franchisor or any third party complaining of any such modifications or seeking expenses, losses or damages caused thereby. Finally, Franchisee expressly waives any claims, demands or damages arising from or related to the foregoing activities including, without limitation, any claim of breach of contract, breach of fiduciary duty, fraud, and/or breach of the implied covenant of good faith and fair dealing.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees must accept and implement any changes or modifications to the Buns On Fire system as if they were part of the system at the time the Franchise Agreement was executed. These changes can include alterations to products, programs, services, methods, standards, forms, policies, and procedures. Buns On Fire may also abandon the current system for another due to a merger, acquisition, or other business reasons. They can also modify or substitute the building, premises, equipment, signage, trade dress, décor, color schemes, and uniform specifications. Even the Marks themselves can be changed, improved, or modified.
Buns On Fire retains the right to modify the Confidential Operations Manual to improve system standards, efficiency, protect goodwill, or meet competition. These modifications must be system-wide and not substantially increase the franchisee's economic burden. The specifications, standards, and operating procedures in the Confidential Operations Manual are considered part of the Franchise Agreement.
While franchisees are obligated to implement these changes, Buns On Fire is not liable for any expenses, losses, or damages sustained by the franchisee as a result of these modifications. The franchisee also agrees not to participate in any litigation against Buns On Fire or any third party regarding these changes and waives any claims related to these modifications, including claims of breach of contract, fiduciary duty, fraud, or breach of good faith.